Rising costs hurt Vistaprint N.V. (NASDAQ:VPRT) in the second quarter as profit dropped from a year earlier. VistaPrint is a printing firm that targets its service to small businesses. It provides high-impact personalized products and services for small businesses and the home.

Results: Net income for the business services company fell to $31.7 million (82 cents per share) vs. $34 million (75 cents per share) a year earlier. This is a decline of 6.8% from the year earlier quarter.

Revenue: Rose 28.1% to $299.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations:VPRT reported adjusted net income of 97 cents per share. By that measure, the company beat the mean estimate of 61 cents per share. Analysts were expecting revenue of $297.1 million.

Quoting Management: “We are very pleased with our second quarter,” said Robert Keane, president and chief executive officer. “The quarter reflects momentum in our strategy initiatives and investment in resources which we are confident will lead to future growth. Revenue was in the upper half of our guidance range due to strong sales of holiday and small business products during our seasonally strongest quarter of the year. Earnings per share excluding gains from our recent share repurchase activity exceeded our expectations due to a favorable non-operational foreign currency benefit, favorability in our tax rate, the timing of some planned operating expenses, and gross margin improvements. We were able to deliver these great results in the organic business while negotiating, performing due diligence, carrying out closing activities and planning integration activities for two acquisitions.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.5%, with the biggest boost coming in the most recent quarter when revenue rose 28.1% from the year earlier quarter.

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 24.2% from the year earlier quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 19 cents versus a mean estimate of net income of 14 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 16 cents per share, down from 27 cents ninety days ago. The average estimate for the fiscal year is now 92 cents per share, down from $1.18 sixty days ago.